Iris Energy (NASDAQ:IREN – Get Free Report) and Runway Growth Finance (NASDAQ:RWAY – Get Free Report) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.
Valuation & Earnings
This table compares Iris Energy and Runway Growth Finance”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Iris Energy | $372.10 million | 4.34 | -$28.95 million | N/A | N/A |
| Runway Growth Finance | $75.13 million | 4.88 | $44.34 million | $1.66 | 5.91 |
Insider and Institutional Ownership
41.1% of Iris Energy shares are held by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are held by institutional investors. 21.5% of Iris Energy shares are held by insiders. Comparatively, 1.0% of Runway Growth Finance shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Iris Energy and Runway Growth Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Iris Energy | -17.94% | -3.98% | -3.33% |
| Runway Growth Finance | 27.05% | 12.91% | 6.33% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Iris Energy and Runway Growth Finance, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Iris Energy | 0 | 1 | 10 | 1 | 3.00 |
| Runway Growth Finance | 0 | 3 | 2 | 0 | 2.40 |
Iris Energy presently has a consensus price target of $20.30, suggesting a potential upside of 136.05%. Runway Growth Finance has a consensus price target of $10.70, suggesting a potential upside of 9.07%. Given Iris Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Iris Energy is more favorable than Runway Growth Finance.
Volatility and Risk
Iris Energy has a beta of 3.67, indicating that its share price is 267% more volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
Summary
Iris Energy beats Runway Growth Finance on 7 of the 13 factors compared between the two stocks.
About Iris Energy
Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.
About Runway Growth Finance
Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.
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